By John Lloyd, CEO, Fidelis Private Fund
When I talk with new investors, the question always comes up: “What exactly am I buying? Do I own a piece of real estate? Am I a landlord?”
This is a fair question, as the world of private funds often uses confusing jargon. The answer is simple: You are not the landlord. You are the bank. You are investing in debt, not equity.
The Investment Structure
The confusion stems from the word “Real Estate.” When you buy rental property, you are the owner (equity), taking on risks like vacancies and maintenance. When you invest with Fidelis, you purchase a share of the Fidelis Private Fund, which acts as a diversified reservoir of capital.
We use this capital to issue short-term, commercial real estate loans to professional borrowers. In exchange, we receive a Promissory Note and a Deed of Trust—the security instrument that gives us rights to the property if the borrower defaults.
The Power of the Pool and Stability
What you own is a fractional interest in a diversified pool of these loans. This structure is the key to Stability and Simplicity.
If your capital were tied to a single project and that borrower defaulted, your income would dry up immediately. By pooling the loans, if one borrower hiccups, the other performing loans keep the Fixed Income flowing to our investors.
This model gives you the security of real estate—because every dollar we lend is backed by tangible bricks, mortar, and dirt—without the headaches of property management. You are simply collecting the interest payments that the borrower is contractually obligated to pay.
The Bottom Line
To answer the question concisely: You aren’t buying real estate. You are buying a reliable revenue stream backed by a portfolio of buildings. It’s debt, not equity. It is a passive, fixed-income approach designed to keep your capital safe while it works hard for you. Fidelis functions like a bank… as a lender. Thus our investors are part of this lending entity. If you want to participate as part of a bank model / private lending entity, let’s talk.
If the world of private lending still feels complex, or if you just want to walk through the mechanics of how we protect principal, give me a call. I believe the best partnerships start with a simple conversation—no pressure, just clarity. Give me a call at: 702-379-3468.